Chrysler Group slashes workforce

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DaimlerChrysler’s Chrysler Group is to shed 13,000 jobs over the next two years as part of a plan to return to profitability by 2008.

yesterday announced a three-year Recovery and Transformation Plan that seeks a return to profitability by 2008. The plan will result 13,000 employees losing their jobs between 2007 and 2009.

Chrysler Group President and CEO Tom LaSorda outlined the plan at the DaimlerChrysler Annual Press Conference, held in Auburn Hills, Michigan.

Dr. Dieter Zetsche, Chairman of the Board of Management of DaimlerChrysler said: ‘The Chrysler Team worked out a comprehensive Recovery and Transformation Plan using all resources within DaimlerChrysler.

‘In addition to that and in order to optimise and accelerate the presented plan we are looking into further strategic options with partners beyond the business cooperation partners mentioned. In this regard, we do not exclude any option in order to find the best solution for both the Chrysler Group and DaimlerChrysler.’

According to a statement, the Recovery and Transformation Plan is aimed at a return to profitability with a primary focus on costs. It is structured to over-achieve in order to offset potential unforeseen market headwinds, resulting in a target of €3.5 billion ($4.5 billion) of financial improvements (or a return on sales of 2.5 percent) by 2009.

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